18

Managing Mass
Communications:
Advertising,
Sales Promotions,
Events and Experiences,
and Public Relations

Marketing Management, 13th ed

 Chapter Questions

• What steps are involved in developing an

advertising program?
• How should sales promotion decisions be
made?
• What are the guidelines for effective brand-
building events and experiences?
• How can companies exploit the potential of
public relations and publicity?

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 GEICO Relies Heavily on
TV Advertising

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 What is Advertising?

Advertising is any paid form of

nonpersonal presentation and
promotion of ideas, goods, or services
by an identified sponsor.

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 Procter & Gamble’s
Advertising History

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 Figure 18.1 The Five M’s of Advertising

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 Advertising Objectives

Informative Persuasive
advertising advertising

Reminder Reinforcement
advertising advertising

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 Factors to Consider in Setting an
Advertising Budget

Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

Product substitutability

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 Developing the
Advertising Campaign
• Message generation
and evaluation
• Creative
development and
execution
• Legal and social
issues

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 Television

Advantages Disadvantages
• Reaches broad • Brief
spectrum of consumers • Clutter
• Low cost per exposure • High cost of production
• Ability to demonstrate • High cost of placement
product use • Lack of attention by
• Ability to portray image viewers
and brand personality

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 Print Ads

Advantages Disadvantages
• Detailed product • Passive medium
information • Clutter
• Ability to • Unable to
communicate user demonstrate
imagery product use
• Flexibility
• Ability to segment

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 Print Ad Components

Picture

Headline

Copy
Signature

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 Print Ad Evaluation Criteria

• Is the message clear at a glance?

• Is the benefit in the headline?
• Does the illustration support the headline?
• Does the first line of the copy support or
explain the headline and illustration?
• Is the ad easy to read and follow?
• Is the product easily identified?
• Is the brand or sponsor clearly identified?

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 Media Selection

• Reach
• Frequency
• Impact
• Exposure

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 Figure 18.2 Relationship Among Trial,
Awareness, and the Exposure
Function

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 Reach x Frequency = GRPs

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 Choosing Among Major Media Types

• Target audience
and media habits
• Product
characteristics
• Message
characteristics
• Cost

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 Major Media Types

• Newspapers • Outdoor
• Television • Yellow Pages
• Direct mail • Newsletters
• Radio • Brochures
• Magazines • Telephone
• Internet

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 Table 18.2 Marketing Communication
Expenditures (2007)

Media $ % of Total
TV 72.1 32

Radio 20.9 9

Internet 16.7 8

Magazines 23.7 11

Newspaper 45.8 20
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 Place Advertising

• Billboards
• Public spaces
• Product placement
• Point-of-purchase

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 Virtual Worlds
as a Media Vehicle

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 Measures of Audience Size

• Circulation
• Audience
• Effective audience
• Effective ad-exposed audience

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 Figure 18.3 Classification of
Advertising Timing Patterns

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 Factors Affecting Timing Patterns

• Buyer turnover
• Purchase frequency
• Forgetting rate

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 Media Schedule Patterns

• Continuity
• Concentration
• Flighting
• Pulsing

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 Evaluating Advertising
Effectiveness
• Communication-Effect Research
• Consumer feedback method
• Portfolio tests
• Laboratory tests
• Sales-Effect Research

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 Figure 18.4 Formula for Measuring
Sales Impact of Advertising

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 What is Sales Promotion?

Sales promotions consist of a

collection of incentive tools, mostly
short term, designed to stimulate
quicker or greater purchase of
particular products or services by
consumers or the trade.

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 Sales Promotion Tactics
Consumer-directed Trade-directed
• Samples • Price offs
• Coupons • Allowances
• Cash refund offers • Free goods
• Price offs • Sales contests
• Premiums • Spiffs
• Prizes • Trade shows
• Patronage rewards • Specialty
• Free trials advertising
• Tie-in promotions
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 Using Sales Promotions

Establish objectives

Select tools

Develop program

Pretest

Implement and control

Evaluate results
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 Events and Experiences

• $14.9 billion spent

on sponsorship in
2007
• 66% sports
• 11% tours
• 5% festivals, fairs
• 5% arts
• 10% causes

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 Why Sponsor Events?
• To identify with a particular target market or life
style
• To increase brand awareness
• To create or reinforce consumer perceptions of
key brand image associations
• To enhance corporate image
• To create experiences and evoke feelings
• To express commitment to community
• To entertain key clients or reward employees
• To permit merchandising or promotional
opportunities

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 Using Sponsored Events

Establish objectives

Choose events

Design programs

Measure effectiveness

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 Ideal Events

Audience closely matches target market

Event generates media attention

Event is unique with few sponsors

Event lends itself to ancillary activities

Event enhances brand image of sponsor

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 Customer Experience Management:
Experience Providers

• Communications • Environments
• Identity • Internet
• Product presence • Electronic media
• Co-branding • People

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 Steps in the CEM Framework

Analyze the customer’s experiential world

Build the experiential platform

Design the brand experience

Structure the customer interface

Engage in continuous innovation

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 Tasks Aided by Public Relations

• Launching new products

• Repositioning a mature product
• Building interest in a product category
• Influencing specific target groups
• Defending products that have
encountered public problems
• Building the corporate image in a way
that reflects favorable on products
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 Public Relations Functions

• Press relations
• Product publicity
• Corporate communications
• Lobbying
• Counseling

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 Major Tools in Marketing PR

• Publications
• Events
• Sponsorships
• News
• Speeches
• Public Service
Activities
• Identity Media

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 Decisions in Marketing PR

Establish objectives

Choose messages

Choose vehicles

Implement

Evaluate results

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 Marketing Debate

 Should marketers test advertising?

Take a position:
1. Ad pretesting is an unnecessary waste
of marketing dollars.
or
2. Ad pretesting provides an important
diagnostic function for marketers as to the
likely success of an ad campaign.

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 Marketing Discussion

 What are some of your favorite TV

ads? Why?
 How effective are the message and
creative strategies?
 How are they building brand equity?

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